Inventory > Setting up for Production > Setting up for Production

Before you begin ... General Ledger preparation

Ensure these necessary General Ledger accounts are set up before you continue here ...

•	Asset Account(s) for Inventory

•	Revenue Account(s) for Product Sales

•	Expense Account(s) for Cost of Goods Sold

Setting up for Production

After you have set up your necessary General Ledger Accounts, here is the sequence of things to do in setting up Inventory ...

•	If you have the Sales module and you intend to use Product Sales Discount Codes and/or Product Sales Commission Codes other than the default values of 0 then complete the Sales Setup for Sales Discount and/or Sales Commission first.

•	If your Allocation method is not FIFO then change the default setting using the Inventory Setup task.

•	Use the Warehouse maintenance task to specify Warehouses such as warehouses or stores where Inventory is maintained. If you have only one Warehouse at this time then set it up. You can always add more Warehouses later.

•	Use the Product maintenance task to set up your Product Groups.

•	When you have more than one Warehouse, use the Product maintenance task to change the applicable Asset, Revenue and Expense AccountID values that vary by Product Group by Warehouse.

•	Use the Product maintenance task to set up at least those Products that are currently in inventory.

•	Enter or Import the opening Product inventory On Hand Quantity and Cost information.

Warehouses setup

AdaptAccounts supports multiple Warehouses. These Warehouses are specified in the Warehouse table.

Every transaction that affects Inventory status (which includes Sales and Purchasing transactions as well as the Inventory application itself) specify the particular Warehouse for that transaction. So even if you currently have only one Warehouse then you would still set that Warehouse up. This enables all transactions to properly specify that Warehouse so that if you add another Warehouse in future it will not have any impact on your existing transactions.

When there is more than one Warehouse set up then the transaction entry forms enable you to pick the particular Warehouse for that transaction.

Product Groups setup

Product Groups provide a way to group Products into categories. This grouping serves several purposes.

One purpose is to provide a convenient mechanism for Products to inherit the common characteristics of similar Products in a Group. For example, the default values for IsService, SalesDiscounCode, SalesCommissioCode, VatCode, IsSalesTaxTaxable are inherited from the Product's Group when a new Product is added.

A related purpose is to provide a convenient mechanism for Product Group by Warehouse records to inherit the defaults for AssetAccountID, RevenueAccountID and ExpenseAccountID when a new Product Group or Warehouse is added.

Another purpose is for Sales analysis and Purchasing analysis functions.

You can set up as many Groups as you wish (i.e. Standard, Special, Custom, Parts, Service etc.). You must set up at least one Group (i.e. Product).

Product Groups and the General Ledger

You likely separate your Sales Revenues into various accounts in your General Ledger Chart of Accounts (such as Product Sales, Parts Sales, Service Sales etc.).

In the Product Group table you also set up at least one Group for each General Ledger Revenue Account. The reason for saying at least is that you may wish to be able to do other analysis in more detail than you do at the General Ledger level. That is, you may wish to set up more Product Groups than you have Revenue accounts in the General Ledger. In such a case, more than one Product Group would use the same General Ledger Revenue account.

These General Ledger Accounts setup for each Product Group are inherited as the initial defaults for each Product Group by Warehouse combination. These Asset, Revenue and Expense Accounts can be changed at that Product Group by Warehouse level. These Accounts are used at the transaction line item level for Product/Warehouse transactions.

Products setup

Use the Product maintenance task to enter your Products.

You can always add Products as you require them. So it's not strictly necessary to set them up here in advance of transaction entry. However, you will likely find it easier to set up all the Products first, and then post their opening balances afterwards.